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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: Crimson Ghost who wrote (29047)4/30/2005 4:28:11 PM
From: SouthFloridaGuy  Read Replies (2) of 116555
 
Personally I think inflation is worse in the long run because it undermines the credibility of the central bank, credit, and currency.

Deflation is curable and is a natural part of capitalism - purge the bad debts and allow for government stabilizers to allow people to live during the hardship...give them health-care, welfare, food stamps, etc...dignity. The Europeans (particularly the Germans/Austrians) understand this far better because they have seen the best and worst of business cycles (and human nature) whereas America's ascent really began after WW2.

If inflation were so great, Zimbabawe would be the wealthiest nation on Earth.
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